Ash-Sharqiyah Development issues prospectus for SAR 225 mln rights issue

12/02/2023 Argaam
Logo of Ash-Sharqiyah Development Co.

Logo of Ash-Sharqiyah Development Co.


Ash-Sharqiyah Development Co. announced the prospectus for its capital increase through a SAR 225 million rights issue.

 

The company will offer 22.5 million shares at SAR 10 each. This is to increase capital by 300% to reach SAR 300 million.

 

Ash-Sharqiyah Development intends to direct the offering proceeds to gradually bring its operational plan into force. The company's management will use these proceeds to start implementing the integrated poultry project.

 

The company will mainly finance its expansion plans in the poultry segment through the development of an integrated project consisting of three sub-projects: A broiler breeding, a slaughterhouse and an incubator. Part of the offering proceeds will also be used to finance the working capital requirements and reduce liabilities and debt ratio.

 

The Capital Market Authority (CMA) approved, in November 2022, the company's application to increase its capital to SAR 225 million through a rights issue.

 

Capital Hike Details

Current Capital

SAR 75 mln

Number of Shares

7.5 mln

Percentage Increase

300%

New Capital

SAR 300 mln

Number of Shares

30 mln

 

Rights Issue Details

Offered Shares

22.5 mln

Offer Price

SAR 10

Issue Size

SAR 225 mln

Eligibility

Each listed shareholder shall have the right to subscribe to three shares per each owned share

Record Date

Shareholders of record by the end of the trading day of the company’s ordinary general meeting (OGM) date and those registered with the Securities Depository Center Company (Edaa) by the end of the second trading day after the OGM

Rights Issue Proceeds

Expansion in the poultry business

SAR 177.3 mln

Payment of liabilities

SAR 29 mln

Working capital

SAR 15 mln

Payment of the offering fees and costs

SAR 3.7 mln

Total

SAR 225.0 mln

 

Additional Information

Financial Advisor, Lead Manager, Lead Bookrunner & Underwriter

Al Khair Capital

 

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